Auctions with endogenous opting-out fees and recursive winning procedures from the Talmud

This article analyzes open ascending and first-price sealed-bid auctions with uncertain value, recursive winning procedure, and cooling-off right in return for an endogenous opting-out fee. I show that although equilibrium bidding strategies in these auctions tend to be less aggressive than in auctions with costless withdrawals, expected revenues are usually higher. Both auctions are spurious-bidding free and the sealed-bid auction is almost shill-bidding robust.